Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) cooled off significantly this past three months but still managed to turn in a positive return of 2.2%. This lagged both the 12.6% gain in the S&P 500 and the 6.8% gain in the NASDAQ by fairly wide margins.The sector is still up a hefty 48.4% over the past year, which puts its performance roughly in the middle of the 43.6% gain in the S&P 500 and the 57.1% gain in the NASDAQ over the corresponding time frame. Sector multiples are also significantly higher than they were a year ago. The sector revenue multiple jumped from 4.0x to 6.3x, while the sector EBITDA multiple increased from 16.0x to 24.6x.

Public Markets

The FOCUS Communications Service Provider Index (CSPI) had a fourth straight reporting period with a positive return. However, this period’s gain of 1.3% was relatively modest and under-performed both the 5.8% gain in the S&P 500 and the 2.8% gain in the NASDAQ over the corresponding time frame. The CSPI is also up 27.6% for the full year. However, even with this substantial increase the sector still lags the S&P 500 (up 53.7%) and the NASDAQ (up 72.0%) by a wide margin. Sector multiples are significantly higher than they were at this time last year. The sector revenue multiple increased from 2.5x to 3.0x, and the sector EBITDA multiple jumped from 7.2x to 8.5x

Public Markets

The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) was in the black for the second straight reporting period with a three-month gain of 5.7%. While this gain beat the 5.2% increase in the S&P 500 over the corresponding time period, it also fell short of the 8.2% gain in the NASDAQ. The sector also looks strong for the full year period with a gain of 17.8%. However, despite the robust increase, the CFTTI still lagged far behind both the 29.0% gain in the S&P 500 and the 54.0% gain in the NASDAQ. Sector multiples closed out the period at 2.3x revenue and 11.2x EBITDA. Both of these are higher than year-ago multiples of 2.1x revenue and 10.4x EBITDA.

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) turned in a very strong overall performance this period with a three-month gain of 18.2%.This handily out- performed the 13.6% gain in the S&P 500 but fell slightly short of the 19.8% gain in the NASDAQ over the same time frame. The story is similar for the full year period with a 41.5% gain in the EFTTI comparing favorably to the 15.2% gain in the S&P 500 but trailing the 42.8% gain in the NASDAQ. Sector multiples are up sharply compared to this same time last year. The sector revenue multiple jumped from 4.3x a year ago to 6.3x currently, while the sector EBITDA multiple expanded from 16.8x to 24.7x.

Public Markets

The FOCUS Communications Service Provider Index (CSPI) managed to pull off a hat trick by posting its third straight reporting period with a strong gain. The sector was up 7.8% over the past three months. While a very good performance, it still managed to lag the 11.7% gain in the S&P 500 and the 15.4% gain in the NASDAQ over the corresponding time frame. This period’s gain was enough to bring the CSPI into the black for the full year period with a gain of 4.9%. Once again, this underperformed both the S&P 500 (up 16.3%) and the NASDAQ (up 43.6%). Sector multiples are slightly higher than at this same time last year. The sector revenue multiple closed out the period at 3.1x (up from 3.0x a year ago) and the sector EBITDA multiple ended at 8.7x (up from 8.4x a year ago).

Public Markets

For the third straight reporting period the FOCUS Telecom Business Services Index (TBSI) managed a positive return, outperforming the S&P 500 and only slightly underperforming the NASDAQ. The TBSI gained 14.3% over the past three months, while the S&P 500 and NASDAQ gained 11.7% and 15.4%, respectively, over the same time frame. The TBSI remains in negative territory for the full year period with a drop of 4.2%. This compares unfavorably to strong gains in both the S&P 500 (up 16.3% year-over-year) and the NASDAQ (up 43.6% year-over-year). Sector multiples are also lower than they were at this time last year. The sector revenue multiple fell from 0.7x a year ago to 0.6x, while the sector EBITDA multiple declined from 9.2x to 8.4x.